02:00 PM EDT, 05/22/2024 (MT Newswires) -- (Updates prices.)

Gold traded lower midafternoon Wednesday, continuing to ease off a record high set Monday with the dollar and yields on the rise.

Gold for August delivery was last seen down US$36.40 to US$2,412.70 per ounce.

The price of the metal, which closed at a record US$2,461.70 on May 20, has been supported by physical demand and hopes the Federal Reserve will move to cut interest rates, which will lower the carrying cost of owning gold. However hawkish comments from Fed governors as inflation remains above the central bank's 2% target have clouded the outlook for the timing of rate cuts.

"Gold (is) edging lower, despite a sixth daily increase in ETF holdings, after Fed's Waller said more data softness was needed to justify rate cuts, Saxo Bank noted.

The dollar rose, making gold more affordable for international buyers. The ICE dollar index was last seen up 0.12 points to 104.79.

Treasury yields also rose, bearish for gold since it offers no interest. The US two-year note was last seen paying 4.878%, up 4.1 basis points, while the yield on the 10-year note was up 0.5 basis points to 4.426%.